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EU hits Musk with 140 million dollar fine despite U.S. backlash

Elon Musk, xAI
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Despite JD Vance’s warning, EU issues landmark penalty to Musk’s X.

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Europe’s sweeping online-content law faced a pivotal test on Friday as regulators handed down their first significant sanction. X was hit with a 120 million Euro fine, while TikTok avoided punishment by agreeing to new transparency measures.

Reuters reported that the decision reflects Brussels’ accelerating push to hold dominant tech companies to stricter accountability standards.

First major action

The European Commission ordered X, owned by Elon Musk, to pay 120 million euros after investigators concluded it had fallen short of its obligations under the Digital Services Act. The law compels major platforms to curb harmful content, clarify how ads are displayed and provide researchers with access to public data.

TikTok escaped a fine by promising improvements to its advertising repository, an area the EU had previously flagged as inadequate for detecting scam promotions. Reuters noted that the concessions keep the company under close review.

The Trump administration has accused the EU of unfairly singling out U.S. firms. Brussels rejects that view, saying the standards apply uniformly.

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Brussels stands firm

EU tech chief Henna Virkkunen said the sanction against X was proportionate and tied to the duration and seriousness of the breaches. She stressed that the DSA “is having nothing to do with censorship,” addressing criticism from Washington.

She added that future enforcement decisions should move faster than the lengthy probe into X. Other investigations involving TikTok, Meta and Temu continue across issues ranging from transparency to product safety.

Transatlantic tensions rise

Ahead of the ruling, U.S. Vice President JD Vance wrote on X: “Rumors swirling that the EU commission will fine X hundreds of millions of dollars for not engaging in censorship. The EU should be supporting free speech not attacking American companies over garbage.”

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As we previously reported regarding his earlier remarks on EU digital policy, Vance has repeatedly framed Brussels’ enforcement as a threat to American tech interests. X did not respond to Reuters’ request for comment.

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TikTok said it would adjust its ad library and encouraged even enforcement across the sector. EU officials said X’s violations included misleading verification features, limited researcher access and opaque advertising tools.

Broader probes into illegal-content moderation on X and into TikTok’s algorithmic and child-safety systems remain underway. The DSA allows penalties of up to 6% of global revenue.

Sources: Reuters, X

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